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The Solution to Oracle Extractable Value

Bell Curve

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Liquidations and Slippage Limits

The chapter discusses the difference in liquidations between low liquidity coins and high liquidity coins, and the concept of auctions acting as a second oracle to import market information. It also touches upon the benefits of the Aave protocol and its granular pricing of liquidations to mitigate risk. The chapter emphasizes the importance of market-based information in decision-making and proposes the use of auctions to redistribute MEV and capture value.

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